Base metals continue to steam ahead, with copper marking a fresh 11-month high and lead and nickel reaching new record peaks above $2,100 and $51,000 per tonne respectively. These three metals have been the best-performing commodities this year, notes Bloomberg, with respective gains of 30%, 41% and 67%.
Nickel's run looks far from over. Stocks of the metal, a key ingredient in stainless steel, have reached 'critically low' levels, says Chris Flood in the FT, and demand is rocketing according to Greg Peel on Egoli.com.au. Chinese nickel consumption grew by 25% last year, underpinning global consumption growth of 7.4%, says financial services group Cannacord Adams; this year Chinese consumption is set to expand by 17.4%. Overall demand will again outstrip supply, and inventories are set to fall to 2.6 weeks consumption. Delays to major mining ventures will keep consumption above production in 2008 . And unless China suffers a spectacular economic collapse, it is likely to be consuming almost twice as much nickel by 2010, says Cannacord.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
-
More than half of over 65s live alone – here’s how to prepare for a solo retirementSpending your mature years solo can mean more time to do the things you’ve always wanted, if you’ve planned ahead for the extra costs of single living
-
Pension inheritance tax paperwork nightmare – how to prepare to avoid penaltiesPensions will be included in inheritance tax calculations from April 2027 and in a shock move, your executors will have to shoulder the burden of finding all your unused pots
